Natural Disaster Tax Relief Act of 2023

HR 5873 provides tax relief for individuals affected by federally declared disasters in 2023. It allows tax-free withdrawals from retirement plans (up to $100,000 per person) without early withdrawal penalties for those living in qualified disaster areas during the incident period, with the option to repay within 3 years to avoid income tax. The bill also increases retirement loan limits to $100,000 and delays loan repayments for 1 year for affected individuals. Additionally, it adjusts casualty loss deductions by raising the $500 threshold for personal casualty losses and increasing the standard deduction by the amount of qualifying disaster losses. These provisions apply to individuals sustaining economic losses in areas with major disaster declarations under the Stafford Act during 2023.